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Book Discussion: Reading Price Charts Bar by Bar by Al Brooks
I don't know of a good solution; I've participated in several rooms - taking questions as they arise is shear chaos, and cherry picking frustrates folks. I've taken a demo tour of Brook's room and like what I see.
This I can say - getting bar-by-bar cometary from a master trader is rare. All the (often well meaning) drivel and catch-phrase teaching in other rooms is a waste of my time. I want to know what a trader is thinking bar by bar. I want to learn to see the market as he/she does.
That Al trades for himself and doesn't call trades is ok, I knew that up front. He does point out potential trades and their success probability. He's often scalping a few ticks, lightning fast, which in retrospect is the "i just got out" moments.
Many students I know (not implying you ceramictilepro, I'm just venting) expect a trading room to be maned by a master trader, who is a gifted teacher, with a bedside manor of a saint. There might be one, but my experience tells me they are often odd ducks with a narrow gift I want to emulate.
Can you help answer these questions from other members on NexusFi?
I'm just starting out with price action, so I hope you guys go easy on me if my questions seem naive.
In the book, if I recall correctly, Brooks says to identify the trend in the first 15 minutes. Also, a trend is clear if the last 20 or so bars are on one side of the EMA.
Today, I was watching ES and it opened gapping higher than Friday's close. The first 3 bars closed lower on a bear bars. These bars were above the EMA as were the bars from the end of Friday. So my questions are: are the bars from the day before considered as part of the trend for the new day? If so, what does this example say about the trend given that the first 3 bars imply a down trend?
Thanks,
-C
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” - Sun Tzu
In my mind, this does not invalidate the trend. Price went too far too fast, this certainly catched the attention of GAP players. Price was out of value, this was just one of the many opportunites we see everyday. You must be quick to profit from it. Price is always converging toward a fair value that should be in your mind. The real trend is for price to find a balanced point. That's one of the main reason why i think reading price action is much more than just interpreting the shape or pattern of three isolated bars. You need to put things in perspective or in a frame of reference that will help you understand why price did what it did at that exact place. What was to be expected. Trading is a continuous process of forming expectations. From a Market Profile perspective, this move was to be expected.
The obvious difficulty in identifying the trend in the first 15 minutes is that it is at least partially dependent on the current market context and 'news' flow of the day, not to mention monthly/yearly seasonality and other stuff. Just the 'news flow' alone introduces a whole lotta variables that make predictability more difficult.
One really good exercise for me is to bring up a 5 minute chart of the SPY or ES (futures) going back several years and just look through the price action from the previous day(s) and then the action in the first hour or two of the open, trying to identify the most predictable price/chart setups with the most likely outcomes. A good way to practice is to go back to the beginning of time in your chart and manually step forward, trying to predict the price action from the open, on a 5 minute chart. You can also have a 60 minute (or greater) chart up at the same time, to have a better idea of the bigger picture context
I am working hard on this as one of my goals is to just be able to trade the first 2.5 hours and then, log out.
I realize this isn't a market profile thread, so not looking for a long discussion on it, but could you briefly say why, MP-wise, it was to be expected? Thanks.
Hey folks. New to the forum. Thought i'd start off with a small contribution. This is a summary of the futures itrade webinar. I didn't add the most basic h1 h2, l1 l2 setups because i already understood them. Anybody trying to decode Brooks should find these "translations" helpful.
